Monzo is exploring the launch of its own mobile phone service in the UK, a move aimed at enhancing competition among established phone companies and generating additional revenue for the digital bank. Founded in 2015, Monzo is currently in the early development phase of a digital SIM card that serves as a software version of the traditional SIM card, enabling connectivity to cellular networks and the internet.
The introduction of this service could attract new customers and offer mobile contracts to existing ones, potentially placing pressure on major providers such as Vodafone, Three, and EE, a BT-owned operator. Monzo is not alone in this venture; financial firms like Revolut and Klarna are also entering the mobile phone market.
A spokesperson from Monzo indicated that customer feedback has highlighted mobile contracts as a point of frustration, prompting the bank to consider innovative solutions tailored to their user experience. This initiative may support Monzo’s revenue diversification, as the bank has evolved from its initial launch targeting millennials with its user-friendly app and distinctive pink card to achieving a fully licensed banking status with over 13 million UK customers and a workforce exceeding 3,900 employees.
Monzo was last valued at £4.5 billion in October 2024 and has seen a significant valuation gap compared to competitors like Revolut, which stood at $45 billion at its latest valuation. Monzo has focused on UK growth and obtained a banking license from British regulators in 2016, whereas Revolut is still awaiting full authorization for its restricted license.
Recently, Monzo faced regulatory challenges, receiving a £21 million fine for inadequate financial crime controls. An FCA investigation revealed that customers could register for accounts using implausible addresses, including notable UK landmarks. Monzo’s CEO, TS Anil, stated that the issues have been addressed, leading to improvements in internal controls.
Source: https://www.theguardian.com/money/2025/aug/18/monzo-plans-to-launch-uk-mobile-phone-service